Panasonic maker Matsushita Electric Industrial reported a 22 percent gain in quarterly operating profit on brisk demand for its digital cameras and flat televisions, and it stood by its annual outlook that falls short of market expectations.
Matsushita has been weathering slowing growth in the plasma TV market relatively well because its hefty output capacity can help it cut production costs, but it now faces a firmer yen and the risk of a U.S. recession.
The Osaka, Japan-based company, the world's
Matsushita,
That is below the consensus of 493.8 billion yen ($4.62 billion) in a poll of 20 analysts by Reuters Estimates.
Matsushita now plans heavy investments in liquid crystal display (LCD) panel capacity in an effort to boost its presence in the faster-growing LCD TV segment.
It held a 2.9 percent share in the global LCD TV market in the first nine months of 2007, trailing well behind Samsung's 18.2 percent and Sony's 15.1 percent, according to data from research firm DisplaySearch.
Operating profit at Matsushita, which offers Lumix digital cameras and Viera flat TVs, came to 165.4 billion yen ($1.55 billion) in the October-to-December quarter, up from 135.83 billion yen ($1.27 billion) a year earlier.
Net profit rose 46 percent to 115.2 billion yen ($1.08 billion) on sales of 2.34 trillion yen ($21.91 billion), down 3.8 percent. Shares in Matsushita closed up 8.7 percent at 2,250 yen ($21.06) ahead of the announcement, outperforming the Tokyo stock market's electrical-machinery index, which rose 2.7 percent. Matsushita shares had slid 4 percent since October through Wednesday, while the subindex lost 21 percent.
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